The credit operation was closed by the owners of the mega-complex – BM Varejo, controlled by Groupe Allard and whose minority partners are Autonomy Investimentos and Gafisa Properties – and Vectis Gestão. It is a transaction for “people to understand that the financial market is not just for generating income, but can also leverage transformational projects for cities”, says Vectis partner Mucio Mattos.

The transaction consists of issuing a certificate of real estate receivables (CRI) which had the peculiarity of bringing together a combination of guarantees. This is where the resources provided for leasing stores come in; for example, Farfetch (retailer of fashion items from brands such as Prada, Burberry, and Versace) and the wealthy club Soho House will operate. The operation also covers receivables from brand exposure contracts as collateral. Bradesco is already confirmed as the name of the cultural center. Although Cidade Matarazzo is known as a corner of luxury, it is expected to attract more than 30,000 people a day, with attractions open to the general public.

On the financial side, CRI provides the release of R$ 343 million in tranches according to the progress of the works. The first one is out now, worth R$ 80 million. The CRI matures in 2040 and pays IPCA + 9% per year, a not-so-mild value that signals the risk of executing the project in an area with listed buildings, not to mention the extended payment term. The certificate has a single buyer, the real estate investment fund Vectis Juros Real Fundo (ticker VCJR11).

Read the full story (in Portuguese).